posted 08.50 a.m. est
pre-open comment Wednesday 5th June
I marked Responsive Selling (red-at-top) on Tuesday. Session low once again tested the VAL at 1625 (dotted). Overnight ES has printed as low as 1621.75 and one hour pre-open ES is printing just below the poc at 1626. Sellers look to be in control of the dayframe but Significant Selling marked below 1626 would be a negative in the longer timeframe.
%Stocks>50dyma numbers: Nyse 58%, Nasdaq 66%, R2000 69%. Numbers >50 are considered supportive. Numbers >80 are considered overbought.
First Level Resistance = ES 1653 (30dy poc)
First Level Support/Resistance = ES 1626 (prev poc)
Sentiment: my version of the Rydex Assets Ratio was lower again at 4.50 (from 4.82). Two weeks ago the ratio reached 5.43 and I only have two readings higher than this in the database which were were at the market highs in April and September last year. The recent low for the ratio was 3.27 on 25th April.
Supporting Charts + or – or ? indicates bias for equities
+ Bonds TLT: KEY CHART. printing below the major poc at 117.15. Time printed below this level is weak price location. Last week chart reached its lowest level since April 2012.
– Oil USO: Currently printing below the Resistance around 34.20 which is weak price location. Momentum is now negative and down.
– Gold GLD: Fell steeply in April to its lowest level for two years and that level was approached again in May. Momentum, although negative, is up.
– Silver SLV: Recently printed its lowest level since October 2010.
? Dollar Index: Recently printed its highest level since July 2010. Currently prints very close to the 82.75 poc.
? EURUSD: In May chart found Support just above the major poc at 1.2777 and is currently printing just above the Resistance at 1.3070 which is the 24mn poc. Momentum is up.
